Egdon Resources reports farm-out of interest in the Wressle Prospect

AIM-listed UK-based exploration and production company Egdon Resources has reported the farm-out of an interest in Petroleum Exploration and Development Licence 180 (PEDL180) to Union Jack Oil.

AIM-listed UK-based exploration and production company Egdon Resources has reported the farm-out of an interest in Petroleum Exploration and Development Licence 180 (PEDL180) to Union Jack Oil.

The group reported that the farm-out highlighted the company's strategy of farming out assets to manage risk and accelerate activity.

Under the terms of the agreement, Egdon Resources said that Union Jack would pay 16.66% of the cost of the planned Wressle-1 exploration well to earn an 8.33% interest in PEDL180.

If the well proves the existence of an economically developable hydrocarbon accumulation, Egdon Resources said Union Jack would also earn an 8.33% interest in the part of the field which is determined to extend into the adjoining Licence PEDL182.

As a result of the farm-out, Egdon's exposure to the Wressle-1 well cost has been reduced to 16.67%.

Mark Abbott, Managing Director of Egdon Resources, said: "We are pleased to welcome Union Jack into PEDL180 and the drilling of the Wressle Prospect. The prospect is well defined on new 3D seismic data and has the right address, being located between existing oil fields and discoveries."

He added: "This farm-out is a further example of delivering on our strategy of managing both the technical and financial risks within our overall drilling portfolio. We now look forward to commencement of drilling operations in the East Midlands in the third quarter of 2013."

Egdon currently holds interests in 29 licences in the UK and France and has an active programme of exploration, appraisal and development within its balanced portfolio of oil and gas assets.

Egdon Resources' share price was up 1.52% to 8.38p at 11:26 on Wednesday.

MF

Recommended

Ensign Group: profiting from US private care
Trading

Ensign Group: profiting from US private care

Nursing and care-home specialist Ensign Group should thrive as Americans age. Matthew Partridge picks the best way to play it.
28 Sep 2021
How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021